The stock of DragonWave, Inc. (TSE:DWI) gapped down by $0.01 today and has $3.79 target or 10.00% below today’s $4.21 share price. The 9 months technical chart setup indicates high risk for the $21.64 million company. The gap down was reported on Nov, 3 by Barchart.com. If the $3.79 price target is reached, the company will be worth $2.16M less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. About 18,670 shares traded hands. DragonWave, Inc. (TSE:DWI) has risen 6.00% since October 4, 2016 and is uptrending. It has outperformed by 4.79% the S&P500.
DragonWave Inc. is a provider of packet microwave solutions for Internet protocol (IP) networks. The company has a market cap of $21.64 million. The Firm operates through broadband wireless backhaul equipment segment. It currently has negative earnings. The principal application of DragonWave’s products is mobile network backhaul.
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